Rentokil sells NW arm

RENTOKIL Initial has sold its its north west based electronic security arm in a £595m deal. The business services group said the planned disposal of Initial Electronic Security Group to US-based was a "significant step" in its drive to focus resources on remaining operations, such as textile services and parcel delivery.

RENTOKIL Initial has sold its its north west based electronic security arm in a £595m deal.

The business services group said the planned disposal of Initial Electronic Security Group to US-based was a "significant step" in its drive to focus resources on remaining operations, such as textile services and parcel delivery.

The move to dispose of the division, which installs and maintains security alarms, follows deals for its manned guard and business conference arms.

Consultations

The transaction is conditional upon regulatory approvals and employee consultations, but could be completed by the end of June. Proceeds will be used to reduce debt, Rentokil said.

IESG made operating profits of £40.4m on £282m of revenue in the year to December 31. Its main business is with commercial and private sector organisation in the UK, France, Holland and the US.